The corporation finances clean energy projects and was established to transition Australia "to a carbon-constrained economy".

While the Senate was voting on the repeal bill, the government introduced its own climate action legislation - setting up a direct action fund - to the lower house.

Treasurer Joe Hockey said the legislation to abolish the corporation would be reintroduced to parliament next week.

The government did not believe it was appropriate to keep borrowing money to underwrite a $10 billion taxpayer funded bank that cherry-picked investments in direct competition with the private sector, he said.